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View Diary: The Daily Show/Colbert Report Late-night Happy Hour 01.08.13 (94 comments)

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  •  The FBI is now involved in investigating (8+ / 0-)

    the abrupt closure of a for profit school in CT and RI.

    The FBI has joined the investigation into the abrupt closure of the Sawyer School in Rhode Island and Connecticut, a source told NBC 10 News on Tuesday.

    State police told The Associated Press last week they are reviewing Sawyer's records before determining whether to open a criminal investigation. The U.S. attorney's office is also involved.

    The U.S. Department of Education said the amount of federal student aid received by the for-profit career training school dropped sharply -- and its enrollment fell as well -- before it abruptly closed its doors last week.

    Sara Gant, a spokeswoman for the department, said the Sawyer School got $2.3 million for the 2012-2013 year compared to about $7.4 million in 2011-2012. She said the drop in aid mirrored the enrollment decline but she did not have exact figures.

    Anthony Bieda, a spokesman for the Accrediting Council for Independent Colleges and Schools, said there were no warning signs that Sawyer was in trouble, although a recent change in federal financial aid policies could have contributed to the schools' sudden closure.

    As of July 1, newly enrolled students were required to have a high school diploma or GED to receive federal financial aid. That could have thrown the business into a "financial problem we would not necessarily have detected," he said.

    The accrediting council, which reviews schools' enrollment figures and audited financial statements annually, had not received the financial statements for 2012 because they were not due until the end of the year - the same time the school closed, Bieda said. The council pulled Sawyer's accreditation as a result of the shutdown.

    FBI joins investigation into Sawyer School closing

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